Even the largest company in the world by market cap is subject to earthly forces. The global semiconductor shortage has reached Apple Inc. (AAPL), and analysts are keeping a sharp eye on the developing story. Beyond this, the company is expected to release earnings results after market close on Tuesday, July 27, and the outlook remains strong. (See Apple stock charts on TipRanks)
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
After conducting a survey, Sidney Ho of Deutsche Bank reported that the upgrade in iPhone capability to 5G remains a strong buying incentive for many users, and that those who make the purchase often return for more Apple products.
Ho reiterated the stock as a Buy, and provided a price target of $165. This target reflects a possible 12-month upside of 15.83%.
The five-star analyst was optimistic about increases in iPhone production for the upcoming model, possibly up to 90 million units from the normal 75 million. Furthermore, despite the chip shortages and other supply chain issues, Ho expects Apple to begin shipping its new product in September of 2021.
After compelling sales of iPhones, Macs, and accessories, the multinational is anticipated by Ho to beat Wall Street’s earnings estimates of –18% quarter-over-quarter. Moreover, the work-from-home shifts in professional environments has possibly served as a boon for the consumer electronics company.
Ho foresees Apple benefitting from “improving consumer spending” and “strong momentum across all of its businesses,” and as such anticipates long-term gains in share price. These factors come as the U.S. and the world continue to recover from COVID-19 pandemic induced economic slowdowns.
On TipRanks, AAPL has an analyst rating consensus of Moderate Buy, based on 20 Buy, 5 Hold, and 2 Sell ratings. The average Apple price target is $158.62, suggesting a possible 12-month upside of 11.35%. AAPL closed trading Monday at a price of $142.45 per share.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
